Losses in Lisbon peg back European shares

jueves 7 de agosto de 2014 10:30 GYT

* Concerns over Portuguese banks hits Lisbon market

* ECB keeps rates at record lows

* Ukraine/Russia sanctions keep stock markets on back foot

By Sudip Kar-Gupta

LONDON, Aug 7 (Reuters) - Concerns about Portugal's banking system hit the Lisbon market on Thursday and weighed on European shares, which were also kept in check by tensions between Western powers and Russia.

The European Central Bank kept its main interest rate at a record low 0.15 percent, but the decision was widely expected by investors and did not move equity markets.

Lisbon's benchmark PSI-20 index was down 1 percent, underperforming smaller losses on other European stock markets.

Traders said the Lisbon market was hurt by fears over the state rescue of Portuguese bank Banco Espirito Santo (BES) , which was hit by financial problems associated with its Espirito Santo founding family.

Investors are concerned that lenders who contribute to a bank recapitalisation fund, through which the state injected 4.9 billion euros ($6.5 billion) to carve out a healthy new bank out of BES, may end up paying a chunk of the rescue bill.   Continuación...